Financial Qualifications for Renting
Most landlords require guaranteed income of 40-50 times the monthly rent. If you are renting an apartment as a couple or as a roommate share, your combined income will likely be accepted. Landlords may also take into consideration outstanding loans and liquid assets
Example: Monthly Rent = $2400
Applicants must earn a minimum of:
(40 x $2400) = $96,000
HOW MUCH CAN I AFFORD TO PAY IN RENT?
To determine how much you can afford, simply take your salary or combined salaries and divide by 40, 45 or 50.
Example: Individual/Combined Salary = $80,000
$80,000/40 = $2000/monthly rent
If applicants do not meet the financial requirements of the building, the landlord may accept a lease co-signer or guarantor. The guarantor will most likely need to be from the tri-state area of New York, New Jersey or Connecticut but this may vary.
Typically guarantors are a family member, but that is not mandatory. Guarantors are expected to earn at least double the requirements of the applicant. For example, 80-100 times the monthly rent.
Documentation of a guarantor’s financial position will be required including 2 years of tax returns. In addition, a notarized “Guarantor Letter” accepting the terms of the lease must be submitted.